Archive for August 2018

_______ is a set of standards in fields such as environmental auditing, performance evaluation, and labeling, that is adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly manner.

_______ is a set of standards in fields such as environmental auditing, performance evaluation, and labeling, that is adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly manner. 



A) ISO 14001
B) EMS 14000
C) UN 5000
D) SEC 100
E) A sustainability report


Answer: A) ISO 14001

All of the following statements are true EXCEPT

All of the following statements are true EXCEPT 



A) ISO is the world's largest developer of sustainability standards.
B) ISO standards are widely accepted all over the world.
C) ISO has legal authority to enforce its regulations' implementation.
D) ISO standards are voluntary.
E) ISO itself does not regulate or legislate.


Answer: C) ISO has legal authority to enforce its regulations' implementation.

A proactive environmental policy is likely to lead to

A proactive environmental policy is likely to lead to 



A) higher cleanup costs.
B) conservation of energy.
C) reduced customer loyalty.
D) numerous liability suits.
E) higher medical costs.


Answer: B) conservation of energy.

Preserving the environment should be a permanent part of doing business for which of the following reasons?

Preserving the environment should be a permanent part of doing business for which of the following reasons? 



A) Consumer demand for environmentally safe products and packages is low.
B) Public opinion demanding that firms conduct business in ways that preserve the natural environment is weak.
C) Federal and state environmental regulations are fairly simple and static.
D) Many consumers, suppliers, distributors, and investors shun doing business with environmentally strong firms.
E) More lenders are examining the environmental liabilities of businesses seeking loans.


Answer: E) More lenders are examining the environmental liabilities of businesses seeking loans.

In an effort to manage ecological challenges, many companies are

In an effort to manage ecological challenges, many companies are 



A) moving environmental affairs from the staff side of the organization to the line side.
B) moving environmental affairs from the line side of the organization to the staff side.
C) making the chief operating officer report directly to the corporate environmental group.
D) omitting an environmental representative from their board of directors.
E) purging environmental values from their mission statements.


Answer: A) moving environmental affairs from the staff side of the organization to the line side.

Special natural environment issues include all of the following EXCEPT

Special natural environment issues include all of the following EXCEPT 



A) ozone depletion
B) destruction of animal habitats
C) pollution control
D) spreading computer viruses
E) developing biodegradable products and packages


Answer: D) spreading computer viruses

It has become ________, since uniform standards defining environmentally responsible company actions are rapidly being incorporated into our legal landscape.

It has become ________, since uniform standards defining environmentally responsible company actions are rapidly being incorporated into our legal landscape. 



A) more and more difficult for firms to make "green" claims when their actions are not substantive or even true
B) increasingly easy for firms to get away with placing "green" terminology on their products without any oversight
C) customary for firms to use terms like "organic," "green," or "earth-friendly" when their products don't warrant it
D) more common for consumers to be cynical about corporate environmental claims
E) impossible for firms to omit "green" terminology from their labels


Answer: A) more and more difficult for firms to make "green" claims when their actions are not substantive or even true

Wal-Mart encourages its employees to adopt "Personal Sustainability Projects" like weight-loss or smoking-cessation support groups, illustrating that

Wal-Mart encourages its employees to adopt "Personal Sustainability Projects" like weight-loss or smoking-cessation support groups, illustrating that 



A) employee wellness can be a part of sustainability.
B) employee health issues have no business in the workplace.
C) firms should crack down on employees' personal interests infringing upon business hours.
D) the Global Reporting Initiative requires this of all U.S. companies.
E) a company's interest in its employees should be restricted solely to their work duties.


Answer: A) employee wellness can be a part of sustainability.

A document that discloses to shareholders information about a firm's labor practices, product sourcing, energy efficiency, environmental impact, and business ethics practices is known as

A document that discloses to shareholders information about a firm's labor practices, product sourcing, energy efficiency, environmental impact, and business ethics practices is known as 



A) a code of ethics.
B) a sustainability report.
C) an EMS.
D) ISO 14000.
E) green terminology.


Answer: B) a sustainability report.

If a firm has a bad sustainability record this will

If a firm has a bad sustainability record this will 



A) help a firm in the market.
B) improve a firm's standing in the community.
C) cause investors to closely scrutinize the firm.
D) deflect the scrutiny of a firm by environmentalists.
E) release the firm from governmental reporting obligations.


Answer: C) cause investors to closely scrutinize the firm.

Firms should strive to engage in social activities that

Firms should strive to engage in social activities that 



A) have economic benefits.
B) have no economic benefits.
C) are detrimental to economic growth.
D) drain financial resources.
E) garner goodwill only, not profits.


Answer: A) have economic benefits.

Social policy can best be defined as

Social policy can best be defined as 



A) the responsibilities a firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups.
B) a document providing behavioral guidelines that cover daily activities and decisions within a firm.
C) an SEC mandate to report any unethical behavior.
D) the legal requirement to reveal how a firm's operations impact the natural environment.
E) mandatory technical standards that result in an EMS.


Answer: A) the responsibilities a firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups.

According to the text, the first social responsibility of any business is to

According to the text, the first social responsibility of any business is to 




A) make enough profit to cover the costs of the future, because if this is not achieved then no other social responsibility can be met.
B) avoid laying off employees so as to protect the employees' livelihood, even if that decision may force the firm to liquidate.
C) engage in social activities that have no economic benefits, to avoid the appearance of a public relations gimmick.
D) offer courses and training in environmental management.
E) none of the above


Answer: E) none of the above

Firms can align ethical and strategic decision making by

Firms can align ethical and strategic decision making by 



A) omitting ethical considerations from long-term planning.
B) excluding ethical decision making from the performance appraisal process.
C) discouraging whistle-blowing.
D) monitoring departmental and corporate performance regarding ethical issues.
E) all of the above


Answer: D) monitoring departmental and corporate performance regarding ethical issues.

Ethics training programs should contain which of the following?

Ethics training programs should contain which of the following?



A) Messages from the CEO or business owner emphasizing ethical business practices
B) The development and discussion of codes of ethics
C) Procedures for discussing unethical behavior
D) Procedures for reporting unethical behavior
E) All of the above


Answer: E) All of the above

More and more firms believe that ethics training and an ethics culture

More and more firms believe that ethics training and an ethics culture 



A) are socially irresponsible.
B) are admirable but damage a firm's competitive positioning.
C) are costly and provide no practical benefit to the company.
D) create strategic advantage.
E) can tarnish the reputation of a firm.


Answer: D) create strategic advantage.

Which of the following is NOT a way that companies can help create an ethical culture in their organization?

Which of the following is NOT a way that companies can help create an ethical culture in their organization? 



A) Outlining ethical expectations
B) Giving examples of ethical situations that commonly occur in their businesses
C) Providing code-of-conduct manuals
D) Creating interactive exercises that pose hypothetical ethical dilemmas
E) Discouraging whistle-blowing


Answer: E) Discouraging whistle-blowing

Simply having a code of ethics

Simply having a code of ethics 



A) will ensure ethical business behavior.
B) eliminates the need for periodic ethics workshops.
C) is all that is necessary to sensitize people to workplace circumstances in which ethics issues may arise.
D) is insufficient to guarantee that employees behave in an ethical manner.
E) secures an ethics culture in the workplace.


Answer: D) is insufficient to guarantee that employees behave in an ethical manner.

A code of business ethics is

A code of business ethics is 



A) a document that provides behavioral guidelines that cover daily activities and decisions within an organization.
B) concerned with what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, and other groups.
C) a report that reveals how the firm's operations impact the natural environment.
D) a set of strict regulations requiring firms to conserve energy.
E) a series of voluntary standards in the environmental field.


Answer: A) a document that provides behavioral guidelines that cover daily activities and decisions within an organization.

Which of the following business actions is considered to be unethical?

Which of the following business actions is considered to be unethical? 



A) Satisfactory product or service safety
B) Selling products in foreign markets
C) Providing equal opportunities for women and minorities
D) Filing expense accounts
E) Misleading labeling


Answer: E) Misleading labeling

_______ are the individuals primarily responsible for ensuring that high ethical principles are espoused and practiced in an organization.

_______ are the individuals primarily responsible for ensuring that high ethical principles are espoused and practiced in an organization. 



A) Non-management employees
B) Mid-level managers
C) Shareholders
D) Strategists such as CEOs and business owners
E) Governmental regulatory bodies


Answer: D) Strategists such as CEOs and business owners

Bad ethics can _______ strategic plans.

Bad ethics can _______ strategic plans. 



A) derail all but the best
B) derail even the best
C) derail only poorly-intentioned
D) derail only ill-conceived
E) never affect


Answer: B) derail even the best

A particularly important twenty-first-century challenge facing all strategists today is

A particularly important twenty-first-century challenge facing all strategists today is



A) deciding whether the process should be more an art or a science.
B) deciding whether strategies should be visible or hidden from stakeholders.
C) deciding whether the process should be more top-down or bottom-up in their firm.
D) all of the above
E) none of the above


Answer: D) all of the above

Proponents of the top-down approach contend that ________ are the only persons in the firm with the collective experience, acumen, and fiduciary responsibility to make key strategy decisions.

Proponents of the top-down approach contend that ________ are the only persons in the firm with the collective experience, acumen, and fiduciary responsibility to make key strategy decisions. 



A) top executives
B) divisional managers
C) middle-level managers
D) lower-level managers
E) non-management employees


Answer: A) top executives

Which of the following statements about contingency plans is NOT true?

Which of the following statements about contingency plans is NOT true? 



A) Contingency plans should be as simple as possible.
B) Only high-priority areas require the insurance of contingency plans.
C) Contingency plans should be developed for favorable and unfavorable events.
D) Strategists should plan for all possible contingencies.
E) Contingency plans minimize the impact of potential threats


Answer: B) Only high-priority areas require the insurance of contingency plans.

________ organizations require more elaborate and detailed strategy-evaluation systems than ________ ones because it is more difficult to coordinate efforts among different divisions and functional areas.

________ organizations require more elaborate and detailed strategy-evaluation systems than ________ ones because it is more difficult to coordinate efforts among different divisions and functional areas. 




A) Non-profit; for-profit
B) For-profit; non-profit
C) Large; small
D) Small; large
E) Foreign; domestic


Answer: C) Large; small

Which of the following is true regarding the design of a firm's strategy-evaluation system?

Which of the following is true regarding the design of a firm's strategy-evaluation system? 



A) There is a one-size-fits-all system that works for all companies.
B) It does not need to take into account the organization's size.
C) The management style of a firm has no bearing on the design.
D) It should be determined based on the unique characteristics of a company.
E) There is one ideal system


Answer: D) It should be determined based on the unique characteristics of a company.

The strategy-evaluation process should

The strategy-evaluation process should 



A) dominate decisions.
B) be complex.
C) be cumbersome.
D) foster mutual understanding and trust.
E) be restrictive


Answer: D) foster mutual understanding and trust.

Corrective action should do all of the following EXCEPT

Corrective action should do all of the following EXCEPT 



A) capitalize upon internal strengths
B) avoid external opportunities
C) avoid external threats
D) improve internal weaknesses
E) strengthen an organization's competitive position


Answer: B) avoid external opportunities

Corrective actions should always

Corrective actions should always 




A) strengthen an organization's competitive position in its industry.
B) streamline asset holdings.
C) have no risk.
D) involve abandoning existing strategies.
E) all of the above


Answer: A) strengthen an organization's competitive position in its industry.

Financial ratios are used to compare a firm's performance over different time periods, to compare the firm's performance to industry averages, and to compare a firm's performance with

Financial ratios are used to compare a firm's performance over different time periods, to compare the firm's performance to industry averages, and to compare a firm's performance with 



A) overall business standards.
B) projected goals.
C) the performance of suppliers.
D) non-financial ratios.
E) the performance of competitors


Answer: E) the performance of competitors

Which of these is NOT a key financial ratio?

Which of these is NOT a key financial ratio? 



A) Market share
B) Production quality
C) Earnings per share
D) Asset growth
E) Return on equity


Answer: B) Production quality

Quantitative criteria commonly used to evaluate strategies are

Quantitative criteria commonly used to evaluate strategies are 



A) ash budgets.
B) Balanced Scorecards.
C) Capital Asset Pricing Models.
D) financial ratios.
E) present value analyses


Answer: D) financial ratios.

Which of the following is NOT included in measuring organizational performance?

Which of the following is NOT included in measuring organizational performance? 



A) Comparing results to competitors' expectations
B) Examining progress being made toward meeting stated objectives
C) Investigating deviations from plans
D) Evaluating individual performance
E) Comparing expected results to actual results


Answer: A) Comparing results to competitors' expectations


If you discover during the course of strategy evaluation that major changes have occurred in the firm's internal strategic position, you should

If you discover during the course of strategy evaluation that major changes have occurred in the firm's internal strategic position, you should 




A) continue on the present strategic course.
B) wait until the next quarter to see if things revert.
C) take corrective actions.
D) follow the original strategic plan.
E) none of the above


Answer: C) take corrective actions.

Corrective actions are almost always ________ except when external and internal factors have not significantly changed and the firm is progressing satisfactorily toward achieving stated objectives.

Corrective actions are almost always ________ except when external and internal factors have not significantly changed and the firm is progressing satisfactorily toward achieving stated objectives. 



A) unnecessary
B) needed
C) undesirable
D) prohibitively expensive
E) futile


Answer: B) needed

Strategy-evaluation activities should ideally be performed

Strategy-evaluation activities should ideally be performed 



A) just on a periodic basis.
B) only at the onset of a problem.
C) on a continuous basis.
D) solely upon completion of major projects.
E) annually only


Answer: C) on a continuous basis.

Which of the following is NOT a reason for the increasing difficulty of evaluating strategies?

Which of the following is NOT a reason for the increasing difficulty of evaluating strategies? 




A) Product life cycles are longer.
B) Domestic and world economies are less stable.
C) Product development cycles are shorter.
D) Technological advancement is more rapid.
E) Change is occurring more frequently


Answer: A) Product life cycles are longer.

All of the following are reasons strategy evaluation is more difficult today EXCEPT

All of the following are reasons strategy evaluation is more difficult today EXCEPT 



A) a dramatic increase in the environment's complexity
B) the increasing number of variables
C) the increase in the number of both domestic and world events affecting organizations
D) the decreasing difficulty of predicting the future with accuracy
E) the rapid rate of obsolescence of even the best plans


Answer: D) the decreasing difficulty of predicting the future with accuracy

With the passage of time strategy evaluation is becoming

With the passage of time strategy evaluation is becoming 



A) increasingly difficult.
B) much simpler.
C) very convenient.
D) an unnecessary activity.
E) less important


Answer: A) increasingly difficult.

What is the cornerstone of effective strategy evaluation?

What is the cornerstone of effective strategy evaluation? 



A) Adequate and timely feedback
B) Quality and quantity of managers
C) Smaller ratio of top- to lower-level management
D) Evaluation preceding implementation stage
E) Punitive corrective actions


Answer: A) Adequate and timely feedback

Too much emphasis on evaluating strategies

Too much emphasis on evaluating strategies 



A) may be expensive and counterproductive.
B) is not possible - the more emphasis the better.
C) is good for morale, as employees like being closely evaluated.
D) is always advised if the firm can afford it.
E) is worse than too little or no evaluation.


Answer: A) may be expensive and counterproductive.

Which of these is a basic activity of strategy evaluation?

Which of these is a basic activity of strategy evaluation? 



A) Reviewing the underlying bases of current strategies
B) Comparing expected results with actual results
C) Taking corrective actions
D) Choices B and C only
E) All of the above


Answer: E) All of the above

The attitude of U.S. firms toward research and development is best described by which of the following?

The attitude of U.S. firms toward research and development is best described by which of the following? 



A) The veil of secrecy is being lifted, resulting in more collaboration.
B) Firms are more cutthroat than ever and less cooperative with each other.
C) Firms are less interested in working with universities.
D) Firms are spending less in total research and development expenditures.
E) Firms are less involved with research consortia than ever.


Answer: A) The veil of secrecy is being lifted, resulting in more collaboration.

Which of the following is NOT a major approach to R&D?

Which of the following is NOT a major approach to R&D? 



A) To be a pioneer
B) To be an innovative imitator
C) To be a low-cost producer by mass-producing products similar to but less expensive than products recently introduced
D) To be a liquidator
E) All of the above are major approaches to R&D.


Answer: D) To be a liquidator

R&D employees and managers perform all of the following tasks EXCEPT

R&D employees and managers perform all of the following tasks EXCEPT 



A) transferring complex technology
B) altering products to particular tastes and specifications
C) researching resource availability
D) adapting processes to local markets
E) adjusting process to local raw materials


Answer: C) researching resource availability

What is a drawback of using only equity to raise capital?

What is a drawback of using only equity to raise capital? 



A) The cost
B) Fluctuations in the stock market
C) Dilution of the control of the company
D) That it will cause EPS to roller coaster
E) That it doesn't raise as much capital as debt financing


Answer: C) Dilution of the control of the company

After completing an EPS/EBIT analysis, what conclusions would you make if the debt line is above the stock line throughout the range of EBIT on the graph?

After completing an EPS/EBIT analysis, what conclusions would you make if the debt line is above the stock line throughout the range of EBIT on the graph? 




A) Debt appears to be the best financing alternative.
B) Stock would be the best financing alternative.
C) A combination of debt and stock is probably the best financial alternative.
D) Dividends must be considered before conclusions can be made.
E) The company should be privately owned.


Answer: A) Debt appears to be the best financing alternative.

What is the most widely used technique for determining the best combination of debt and stock?

What is the most widely used technique for determining the best combination of debt and stock?



A) Debt-to-stock ratio
B) Earnings per share/earnings before interest and tax analysis
C) Gross profit analysis
D) Capital asset pricing model
E) Present value analysis


Answer: B) Earnings per share/earnings before interest and tax analysis

Which of the following is NOT true regarding stock issuances?

Which of the following is NOT true regarding stock issuances? 



A) They are always better than debt for raising capital.
B) Their effect on stock price is a concern.
C) They can require a company to share future earnings with all new shareholders.
D) Dilution of ownership is a special concern.
E) All of the above statements are true.


Answer:

B) Their effect on stock price is a concern.
C) They can require a company to share future earnings with all new shareholders.
D) Dilution of ownership is a special concern.

Which of the following is NOT given as an example of a decision that may require finance/accounting policies?

Which of the following is NOT given as an example of a decision that may require finance/accounting policies? 



A) To extend the time of accounts receivable
B) To establish a certain percentage discount on accounts within a specified period of time
C) To lease or buy fixed assets
D) To use LIFO, FIFO, or a market-value accounting approach
E) To determine the amount of product diversification


Answer: E) To determine the amount of product diversification

Which of these is not a rule of thumb when using product positioning as a strategy-implementation tool?

Which of these is not a rule of thumb when using product positioning as a strategy-implementation tool?




A) "Don't squat between segments."
B) "Look for the hole or vacant niche."
C) "Try to serve more than one segment with the same strategy."
D) "Don't position yourself in the middle of the map."
E) All of these are valid rules of thumb.


Answer: C) "Try to serve more than one segment with the same strategy."

Which of the following is true about two different market segments?

Which of the following is true about two different market segments? 



A) They can usually be served with the same marketing strategy.
B) They usually require different marketing strategies.
C) They are always in different geographic locations.
D) They are usually interchangeable.
E) All of the above


Answer: B) They usually require different marketing strategies.

Multidimensional scaling is used to determine

Multidimensional scaling is used to determine 



A) the size of a new building.
B) the size of a new department.
C) the amount of high-tech equipment a firm needs.
D) product positioning.
E) market segmentation.


Answer: D) product positioning.

Looking for a vacant niche helps a company determine

Looking for a vacant niche helps a company determine 



A) its advertising budget.
B) the size of the marketing department.
C) the best place to position a product.
D) the best place to locate a new facility.
E) its projected R&D expenditures.


Answer: C) the best place to position a product.

Which is NOT a required step in product positioning?

Which is NOT a required step in product positioning? 



A) Select key criteria that effectively differentiate products or services in the industry.
B) Serve two segments with the same strategy.
C) Plot major competitors' products or services in the resultant matrix.
D) Identify areas in the positioning map where the company's products or services could be most competitive in the given target market.
E) Develop a marketing plan to position the company's products and services appropriately.


Answer: B) Serve two segments with the same strategy.

Perhaps the most dramatic new market segmentation strategy is the

Perhaps the most dramatic new market segmentation strategy is the 




A) targeting of regional tastes.
B) focusing on universal product.
C) preference of international over domestic sales.
D) treatment of industrial markets.
E) none of the above


Answer: A) targeting of regional tastes

Why is market segmentation an important variable in the strategy-implementation process?

Why is market segmentation an important variable in the strategy-implementation process? 



A) Company strategies do not require increased sales through new markets and products.
B) It allows a firm to operate with no resources.
C) It directly affects marketing mix variables.
D) It allows a firm to minimize per-unit profits and per-segment sales.
E) All of the above


Answer: C) It directly affects marketing mix variables.

Why is market segmentation an important variable in strategy implementation?

Why is market segmentation an important variable in strategy implementation? 



A) It allows a small firm to compete successfully with a large firm.
B) It allows a firm to operate with limited resources.
C) Mass production, mass distribution, and mass advertising are not always required.
D) Market segmentation decisions directly affect marketing mix variables.
E) All of the above


Answer: E) All of the above

Which two variables rank as marketing's most important contributions to strategic management?

Which two variables rank as marketing's most important contributions to strategic management? 



A) Diversification and budgeting.
B) Marketing penetration and competition.
C) Competition and collaboration.
D) Product development and market development.
E) Market segmentation and product positioning.


Answer: E) Market segmentation and product positioning.

All of the following are examples of marketing decisions that may require policies EXCEPT

All of the following are examples of marketing decisions that may require policies EXCEPT 



A) to be a market leader or follower
B) how to make advertisements more interactive to be more effective
C) to offer a complete or limited warranty
D) to use heavy, light, or no TV advertising
E) to use exclusive dealerships or multiple channels of distribution


Answer: A) to be a market leader or follower

Which of the following statements is true?

Which of the following statements is true? 



A) The pay of the CEO of a Japanese company is about half the pay of the CEO of an American company.
B) The CEO of a Japanese company earns more than the CEO of a European company.
C) In Japan, individual excellence is emphasized over harmony among managers.
D) Seniority rather than performance has been the key factor in determining pay in Japan.
E) All of the above


Answer: D) Seniority rather than performance has been the key factor in determining pay in Japan.

Changing a strategy to fit an existing culture

Changing a strategy to fit an existing culture 



A) is usually less effective than changing a firm's culture to fit a new strategy.
B) is usually more effective than changing a firm's culture to fit a new strategy.
C) is just as effective as changing a firm's culture to fit a new strategy.
D) is always the best option.
E) none of the above


Answer: A) is usually less effective than changing a firm's culture to fit a new strategy.

Which of the following is in keeping with the current view of organizational change?

Which of the following is in keeping with the current view of organizational change?



A) Organizational change is a project.
B) Organizational change is a continuous process.
C) Organizational change is an event.
D) Organizational change involves unfreezing behavior, changing the behavior, and then refreezing the new behavior.
E) All of the above


Answer: B) Organizational change is a continuous process.

Resistance to change can manifest itself through

Resistance to change can manifest itself through 



A) absenteeism.
B) sabotaging production machines.
C) filing unfounded grievances.
D) unwillingness to cooperate.
E) all of the above


Answer: E) all of the above

Which of these is NOT one of the tests used to determine whether a performance-pay plan will benefit an organization?

Which of these is NOT one of the tests used to determine whether a performance-pay plan will benefit an organization? 




A) Does the plan capture attention?
B) Do employees understand the plan?
C) Is the plan improving communications?
D) Does the plan pay out when it should?
E) Does the plan reduce management layers?


Answer: E) Does the plan reduce management layers?

All of the following statements regarding the recent trend in Japan of switching from seniority-based pay to performance-based approaches are true EXCEPT

All of the following statements regarding the recent trend in Japan of switching from seniority-based pay to performance-based approaches are true EXCEPT 




A) The switch is an effort to cut costs.
B) The switch is boosting employee morale.
C) The switch is an effort to increase productivity.
D) The switch opposes the traditional training of Japanese employees to cooperate rather than compete.
E) The switch goes against decades of encouraging workers to work in groups instead of individually


Answer: B) The switch is boosting employee morale.

A firm uses information technology to break down functional barriers and create a work system based on business processes, products, or outputs rather than on functions or inputs in

A firm uses information technology to break down functional barriers and create a work system based on business processes, products, or outputs rather than on functions or inputs in 



A) restructuring.
B) benchmarking.
C) reengineering.
D) rightsizing.
E) delayering


Answer: C) reengineering.

The primary benefit sought from restructuring is

The primary benefit sought from restructuring is 




A) employee involvement.
B) cost reduction.
C) increased morale.
D) increased number of hierarchical levels in the organization.
E) increased innovation


Answer: B) cost reduction.

Restructuring is also referred to as

Restructuring is also referred to as 



A) reengineering.
B) delayering.
C) diversifying.
D) upsizing.
E) integrating


Answer: B) delayering.

A divisional structure by geographic area is most appropriate when

A divisional structure by geographic area is most appropriate when 



A) organizations have similar branch facilities located in widely dispersed areas.
B) an organization offers only a limited number of products or services.
C) consumption patterns for its products and/or services are the same worldwide.
D) the company's customers in different geographic locations have similar needs and characteristics.
E) the firm serves one geographic area.


Answer: A) organizations have similar branch facilities located in widely dispersed areas.

A divisional structure by product is most effective when

A divisional structure by product is most effective when 




A) special emphasis needs to be placed on specific products.
B) an organization offers few products.
C) an organization's products or services differ substantially.
D) special emphasis needs to be placed on specific services.
E) all of the above


Answer: E) all of the above

Why do changes in company strategy often require changes in the way an organization is structured?

Why do changes in company strategy often require changes in the way an organization is structured?



A) Structure dictates how goals and objectives will be established.
B) Structure dictates how resources will be allocated.
C) Structure should be designed to facilitate the strategic pursuit of a firm.
D) All of the above
E) None of the above


Answer: A) Structure dictates how goals and objectives will be established.

What are the three categories of approaches for managing and resolving conflict?

What are the three categories of approaches for managing and resolving conflict? 



A) Avoidance, defusion, and confrontation
B) Avoidance, apathy, and defusion
C) Ignorance, indifference, and apathy
D) Defusion, apathy, and avoidance
E) Indifference, avoidance, and role-playing


Answer: A) Avoidance, defusion, and confrontation

Conflict in an organization is

Conflict in an organization is 



A) always bad.
B) always good.
C) not always bad.
D) a sign of bankruptcy.
E) completely avoidable.


Answer: C) not always bad

Policies

Policies 



A) let both employees and managers know what is expected of them.
B) provide a basis for management control.
C) allow coordination across organizational units.
D) reduce the amount of time managers spend making decisions.
E) all of the above


Answer: E) all of the above

Which of the following is NOT true about objectives?

Which of the following is NOT true about objectives? 



A) They should be communicated throughout the organization.
B) They should have an appropriate time dimension.
C) They should use terms like "maximize," "minimize," and "as soon as possible."
D) They should be measurable.
E) They should be consistent.

Answer: C) They should use terms like "maximize," "minimize," and "as soon as possible."

Which of these is true about strategy implementation?

Which of these is true about strategy implementation? 




A) It is positioning forces before the action.
B) It focuses on effectiveness.
C) It is primarily an operational process.
D) It is primarily an intellectual process.
E) It requires intuitive skills.


Answer: C) It is primarily an operational process.

Strategy formulation

Strategy formulation 



A) is managing forces during the action.
B) requires coordination among a few individuals.
C) is primarily an operational process.
D) requires special motivation and leadership skills.
E) all of the above


Answer: B) requires coordination among a few individuals.

All of the following are principles of good organizational governance, as established by Business Week, EXCEPT

All of the following are principles of good organizational governance, as established by Business Week, EXCEPT 



A) Each director attends at least 75 percent of all meetings.
B) The audit, compensation and nominating committees are made up solely of outside directors.
C) Each director owns a large equity stake in the company, excluding stock options.
D) At least three directors are current or former company executives.
E) The CEO is not also the Chairperson of the Board.


Answer: D) At least three directors are current or former company executives.

Today, boards of directors are composed mostly of

Today, boards of directors are composed mostly of 



A) outsiders.
B) management.
C) union members.
D) company employees.
E) company stockholders


Answer: A) outsiders.

Which of these is a limitation of QSPM?

Which of these is a limitation of QSPM? 




A) Only a few strategies can be evaluated simultaneously.
B) It is prohibitively expensive.
C) It requires intuitive judgments and educated assumptions.
D) Sets of strategies must be examined in reverse order.
E) It requires equal participation from the entire organization.


Answer: C) It requires intuitive judgments and educated assumptions.

Which of the following is the first step in developing a QSPM?

Which of the following is the first step in developing a QSPM? 




A) Compute the Total Attractiveness Scores.
B) Examine the Stage 2 matrices and identify alternative strategies the organization should consider implementing.
C) Assign weights to each key external and internal factor.
D) Determine the Attractiveness Scores.
E) Make a list of the firm's key external opportunities/threats and internal strengths/weaknesses in the left column of the QSPM.


Answer: E) Make a list of the firm's key external opportunities/threats and internal strengths/weaknesses in the left column of the QSPM

Which analytical tool determines the relative attractiveness of various strategies based on the extent to which key external and internal critical success factors are capitalized upon or improved?

Which analytical tool determines the relative attractiveness of various strategies based on the extent to which key external and internal critical success factors are capitalized upon or improved? 



A) BCG Matrix
B) SPACE Matrix
C) SWOT Matrix
D) IE Matrix
E) QSPM


Answer: E) QSPM

Which matrix is included in the decision stage of the strategy formulation framework?

Which matrix is included in the decision stage of the strategy formulation framework? 




A) Internal Factor Evaluation Matrix
B) Quantitative Strategic Planning Matrix
C) Boston Consulting Group Matrix
D) Grand Strategy Matrix
E) Strategic Position and Action Evaluation Matrix


Answer: B) Quantitative Strategic Planning Matrix

Although Quadrant ________ companies are growing, according to the Grand Strategy Matrix they are unable to compete effectively, and they need to determine why the firm's current approach is ineffective and how the company can best change to improve its competitiveness.

Although Quadrant ________ companies are growing, according to the Grand Strategy Matrix they are unable to compete effectively, and they need to determine why the firm's current approach is ineffective and how the company can best change to improve its competitiveness. 




A) I
B) II
C) III
D) IV
E) V


Answer: B) II

All of the following are limitations of the BCG Matrix EXCEPT

All of the following are limitations of the BCG Matrix EXCEPT 



A) Viewing every business as a star, cash cow, dog or question mark can be an oversimplification.
B) The Matrix requires at least three years worth of data.
C) The Matrix does not reflect divisional or industry growth over time.
D) The Matrix does not allow a company to be classified as somewhere in between two categories.
E) Variables such as size of market and competitive advantages are not considered in the Matrix.


Answer: B) The Matrix requires at least three years worth of data.

In the SPACE analysis, what does a (+6, +3) strategy profile portray?

In the SPACE analysis, what does a (+6, +3) strategy profile portray? 



A) A strong industry position
B) An unstable environment
C) A stable environment
D) A weak industry position
E) A weak financial position


Answer: A) A strong industry position

What are the two external dimensions of the SPACE Matrix?

What are the two external dimensions of the SPACE Matrix? 




A) Stability position and industry position
B) Stability position and competitive position
C) Industry position and competitive position
D) Competitive position and financial position
E) Financial position and industry position


Answer: A) Stability position and industry position

The two internal dimensions represented on the axes of the SPACE Matrix are

The two internal dimensions represented on the axes of the SPACE Matrix are 




A) stability position and industry position.
B) industry position and internationalization.
C) internationalization and competitive position.
D) competitive position and financial position.
E) financial position and stability position.


Answer: D) competitive position and financial position.

Which of the following is a limitation associated with a SWOT Matrix?

Which of the following is a limitation associated with a SWOT Matrix? 



A) Viewing every business as a Star, Cash Cow, Dog, or Question Mark is an oversimplification.
B) Many businesses fall right in the middle of the matrix.
C) It is a static assessment in time.
D) Other variables besides relative market share position and industry growth rate in sales need to be considered.
E) The matrix does not reflect whether or not various divisions or their industry are growing over time.


Answer: C) It is a static assessment in time.

Which of the following is NOT one of the steps involved in constructing a SWOT Matrix?

Which of the following is NOT one of the steps involved in constructing a SWOT Matrix? 




A) List the firm's key external threats.
B) Match internal strengths with external opportunities, and record the resultant SO strategies in the appropriate cell.
C) Match internal weaknesses with external threats, and record the resultant WT strategies.
D) List the firm's external weaknesses.
E) List the firm's external opportunities.


Answer: D) List the firm's external weaknesses.

Which is not true about receiving a gift in Japan?

Which is not true about receiving a gift in Japan?




a. The giver can expect to receive one of similar value in the near future.
b. A gift will be opened in the presence of the giver.
c. The receiver of a gift will be expected to reciprocate.
d. The giving of gifts is one way of indicating the value of the relationship.
e. The presentation may be as important as the gift itself.


Answer: b. A gift will be opened in the presence of the giver.

Which of these guidelines for presenting gifts to the Japanese is incorrect?

Which of these guidelines for presenting gifts to the Japanese is incorrect?




a. Do not wrap a package in white.
b. Carry a gift in a neat paper bag.
c. Present the gift with your right hand, saying, "This is really nothing at all" or something similar.
d. Use top-quality gift wrap.
e. Expect to receive a gift of similar value in the near future.


Answer: c. Present the gift with your right hand, saying, "This is really nothing at all" or something similar.

Which of the following dining hints is not correct?

Which of the following dining hints is not correct?




a. While eating, don't put your elbows on the table.
b. Spoon soup away from you.
c. Place your knife across the top edge of the plate with the cutting edge toward you.
d. When asked to pass the salt or pepper, pass both together.
e. When you are through eating, place your knife diagonally across the middle of the plate to alert the waiter.


Answer: d. When asked to pass the salt or pepper, pass both together.

Which of the following dining hints is not correct?

Which of the following dining hints is not correct?




a. Leave your napkin on your chair if you leave the table during the meal.
b. The person who issues an invitation is expected to pay for the meal.
c. Place your folded napkin on the table at the end of the meal.
d. The usual tip for service is 15-20 percent of the food and bar bill.
e. Keep your elbows off the table while eating.


Answer: d. The usual tip for service is 15-20 percent of the food and bar bill

In the business introduction of a junior account manager, Karl Everson, and the new vice president, Dr. Judith Lambrecht, which of the following is correct?

In the business introduction of a junior account manager, Karl Everson, and the new vice president, Dr. Judith Lambrecht, which of the following is correct?




a. Dr. Lambrecht, I'd like you to meet Karl Everson.
b. Karl Everson, this is Dr. Judith Lambrecht, our new vice president.
c. Karl, this is Judy Lambrecht; Judy, Karl Everson.
d. Judy, this is Karl Everson, Karl, Judy Lambrecht.
e. Dr. Lambrecht, this is Karl, one of our junior account managers.


Answer: a. Dr. Lambrecht, I'd like you to meet Karl Everson.

Which of these points in meeting and greeting people in business is not correct?

Which of these points in meeting and greeting people in business is not correct?




a. The format used for an introduction is less important than avoiding the awkwardness of two people introducing themselves.
b. A higher-ranking person is presented to the lower-ranking person.
c. For people of equal rank, the guest is mentioned first.
d. Either gender may initiate a handshake.
e. The most important part about introductions is to make them.


Answer: b. A higher-ranking person is presented to the lower-ranking person.

Which of the following is not true of business etiquette?

Which of the following is not true of business etiquette?




a. Business etiquette is the practice of polite and appropriate behavior in the business setting.
b. Business etiquette is concerned with the interactions between people.
c. Business etiquette is concerned with rituals.
d. Every company and country has its own rules about business etiquette.
e. Business etiquette differs from social etiquette.


Answer: c. Business etiquette is concerned with rituals.

A plan for an interview follow-up letter includes all of the following except

A plan for an interview follow-up letter includes all of the following except




a. a beginning sincerely expressing appreciation.
b. a reference to a specific incident that occurred related to the writer's background.
c. a reference to the resale of yourself.
d. a confident, forward-looking closing.
e. an error-free letter.


Answer: c. a reference to resale of yourself

The key strategy in practicing interview questions is

The key strategy in practicing interview questions is




a. to formulate an answer to any question so that it highlights your abilities.
b. to answer questions thoroughly as you spend most of your time talking during the interview.
c. to focus on content since that will impress the interviewer.
d. to not ask the interviewer to repeat a question to avoid looking as if you don't understand the question.
e. to answer the "difficult" questions as honestly as possible, but in a way that highlights your qualifications.


Answer: e. to answer the "difficult" questions as honestly as possible, but in a way that highlights your qualifications.

Which of the following is not true?

Which of the following is not true?




a. One or more employment interviews are conducted by 95 percent of all employers before extending a job offer.
b. It is estimated that 90 percent of all job failures result from incompetence.
c. The purpose of an employment interview is to verify information on a résumé.
d. The applicant uses information gathered from the interview to decide whether the organization might be a good fit.
e. An employment interview can be considered a sales presentation.


Answer: b. It is estimated that 90 percent of all job failures result from incompetence.

The final paragraph of an application letter should

The final paragraph of an application letter should




a. thank the readers for reviewing your application materials.
b. ask for a personal interview.
c. not include the phone number because it's listed on the résumé.
d. tell the readers to call you if they need further information.
e. do all of these.


Answer: b. ask for a personal interview

Identify an effective strategy for gaining the reader's attention in an unsolicited application letter.

Identify an effective strategy for gaining the reader's attention in an unsolicited application letter.




a. Identify the particular position for which you are applying, and state how you learned about this opening.
b. Use an opening that demonstrates your creative abilities.
c. Talk about your accomplishments and qualifications immediately to prove that you are an effective worker.
d. Show that you know something about the company, and then show how you can contribute to that company.
e. Use a statement such as "This letter is to indicate my interest in a sales position that you might have available."


Answer: d. Show that you know something about the company, and then show how you can contribute to that company.

Which of the following is not a benefit of electronic résumés?

Which of the following is not a benefit of electronic résumés?




a. A computer can perform a restricted key word screening which can lead to a direct job offer.
b. Electronic résumés relieve you from having to develop and submit a traditional résumé.
c. The format is easier to read than the format of traditional résumés.
d. Employers are relieved of having to manually screen résumés.
e. They are easy to format because they can simply be pasted in from a traditional paper résumé.


Answer: e. They are easy to format because they can simply be pasted in from a traditional paper résumé.

Which of the following statements about references for a résumé is accurate?

Which of the following statements about references for a résumé is accurate?




a. Using a professor's name without permission is acceptable because your professors want you to succeed.
b. The names and addresses of references should appear on the résumé.
c. You should include only character references when applying for jobs.
d. Stating that "References are available on request" ensures that you will be contacted before a prospective employer contacts your references.
e. You always should refuse to sign a waiver stating that you give up your right to see the recommendation letter written by any of your references.


Answer: d. Stating that "References are available on request" ensures that you will be contacted before a prospective employer contacts your references.

Identify the correct guideline for composing the content of a résumé.

Identify the correct guideline for composing the content of a résumé.




a. Write in complete sentences.
b. Choose general, vague words.
c. Use only present tense verbs throughout the résumé.
d. Start each description with an action verb.
e. Describe your experience in terms of what you've accomplished, not what will benefit the reader.


Answer: d. Start each description with an action verb.

A résumé in chronological format follows all of these guidelines except

A résumé in chronological format follows all of these guidelines except




a. it places work experience before education.
b. it uses action words such as conducted and assisted.
c. it provides degree, institution, major, and graduation date.
d. it uses incomplete sentences to emphasize action words.
e. it includes actual names and addresses of references.


Answer: e. it includes actual names and addresses of references.

Which statement regarding the work experience section of a résumé is correct?

Which statement regarding the work experience section of a résumé is correct?




a. Only a quarter of all résumés are prepared in functional order.
b. Functional résumés emphasize your employment history rather than the skills you've developed.
c. Functional résumés are most appropriate when you have a strong continuing work history.
d. Functional résumés are more appropriate when you are remaining in the same industry.
e. The functional arrangement is more appropriate when you are reentering the work force after a long period of unemployment.


Answer: e. The functional arrangement is more appropriate when you are reentering the work force after a long period of unemployment

Which statement regarding the organizational patterns of a résumé is correct?

Which statement regarding the organizational patterns of a résumé is correct?




a. Half of all résumés are prepared in chronological order.
b. Chronological résumés organize your experience by type of skills.
c. Chronological résumés are more appropriate when you are moving into an entirely different line of work.
d. Chronological résumés are appropriate when much of your job experience is related to your objective.
e. Chronological résumés emphasize the skills you've developed.


Answer: d. Chronological résumés are appropriate when much of your job experience is related to your objective.

If you are a recent college graduate, your résumé should

If you are a recent college graduate, your résumé should




a. include a lengthy list of your courses.
b. include keywords referring to your education.
c. include an objective referring to your education.
d. show your work experience above your education.
e. show your education before your work background.


Answer: e. show your education before your work background

Recruiters usually expect to see all of the following on a résumé except

Recruiters usually expect to see all of the following on a résumé except




a. your job objective.
b. any special skills or talents.
c. your personal references.
d. the names of previous employers.
e. your college name and date of graduation.


Answer: d. the names of previous employers

Which one of these demographic trends for 2002 to 2012 is not correct?

Which one of these demographic trends for 2002 to 2012 is not correct?




a. The civilian labor force is expected to grow 13 percent.
b. Office administration support occupations will grow faster than average.
c. Educational and health services will add more jobs than any other industry sector.
d. Nine of the ten fastest growing occupations are health or computer occupations.
e. A college degree or higher is required for all but one of the 50 highest paying jobs.


Answer: b. Office Administration support occupations will grow fast than average

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